THE PETROL TAX.

Otago Witness, Issue 3861, 13 March 1928, Page 20

THE PETROL TAX.

EQUITABLE BASIS OF ALLO- ‘ CATION. JUSTICE TO SOUTH ISLAND. t A nsoll (president of the SoutA Island Motor Lmon), who has devoted his energies in a very whole-hearted manner to securing for the South Isuand an equitable allocation of the revenue derived from the recently-instituted petrol tax. has had the satisfaction of seeing his efforts crowned with success. The following statement, based on negotiations with the Prime Minister during the past few days, has been prepared by Mr Ansell for publication : — ‘‘Allocation of the revenue derived from the new petrol tax, a matter of importance to South Island interests, was the subject of a conference between the Prime Minister (Mr J. G. Coates) and myself during his recent visit to Dunedin. The basis of our objection to non-allocation has been clearly placed before the public and requires no further reiteration. Briefly the case put before the Prime Minister was as follows: — “1. That the petrol tax is a special tax levied upon a section whose consent to the tax carried with it a condition that the money should be spent where it would have a reasonable chance of giving a fair return by way of reduced running costs, etc. “2. That motor taxation is a special tax levied for a specific purpose and designed to measure payment according to the use of the road. Lt is also an objective that motorists should, within reasonable limits, provide a percentage of the cost of maintaining the roads they use. it is obvious that without an equitable allocation the proceeds of this tax may be diverted in such a manner as to create an injustice to payers of the tax and to local bodies which are responsible for the maintenance of the roads used largely by them and so violate the principle of payment according to use. Other important phases were also dealt with “ The Prime Minister, discussing the various points brought before him, enumerated the difficulties that existed in arriving at an equitable basis for allocation, and pointed out that an allocation based on the number of vehicles could not be a fair basis, as figures produced showed that the North Lsland roads carried a larger proportion of heavy vehicles than did those of the South. Consequently, number of vehicles only could not be accepted as the deciding factor. However, he was anxious to arrive at .a solution of the problem, and undertook that as soon as the recommendations of the Highways Board regarding secondary roads came to hand, the Government would ascertain the average maintenance cost per mile of road, and before the roads were gazetted would endeavour to see that the allocation of the petrol tax would approximately conform with the number of vehicles in each island. “ The '.eeision of the Prime Minister to remove the possibility of injustice must be regarded as extremely satisfactory. “ That Mr Coates gave ample time from busy days in order fully to discuss this important matter serves to show his sincerity of desire to hold the balance evenly between the two islands, and to have a personal grip of matters demanding his attention.

“ Owing to the non-allocation of the petrol tax, I have vigorously criticised the Government of which Mr Coates is head. Nevertheless, I received from our Prime Minister every courtesy, and my statemen- 1 of our case was accorded the most careful consideration. I wish publicly to acknowledge my appreciation.”